US President Donald Trump vowed to boost beef imports from Argentina as the US faces soaring meat prices. But any increases may offer little relief to consumers – and risk angering US ranchers.
Trump said on Sunday that buying more meat from Argentina would “bring our beef prices down” while also aiding the struggling South American ally. That’s even as he suggested that an agreement wouldn’t be for a significant amount of shipments, with Argentina currently accounting for only a small share of US beef imports.
“If we buy some beef now – I’m not talking about that much – from Argentina, it would help Argentina, which we consider a very good country, a very good ally,” Trump said on Air Force One. The president signalled last week that his administration had struck an agreement to bring down the price of beef, without specifically mentioning Argentina.
The prospect of a deal with Argentina met with criticism from industry groups as ranchers struggle with dwindling herds.
“More imports from Argentina will benefit the global packers without helping consumers,” Bill Bullard, chief executive officer of cattle producer group R-CALF USA, said by email. “Excessive imports have displaced domestic production and domestic cattle.”
US beef prices have skyrocketed to record levels, challenging Trump’s promise to make groceries more affordable. Booming imports have fallen short of offsetting a severe domestic cattle shortage. An additional 40 percent tariff on imported goods from Brazil, the world’s largest beef exporter, is tightening supplies further.
Argentina supplies about two percent of US beef imports, well behind countries such as Australia, Brazil, Canada and New Zealand, according to the US Department of Agriculture. Its shipments of about 33,000 metric tons of beef to the US between January and July pales in comparison to Brazil’s 367,000 metric tons over the same period. The bulk of Argentina’s beef exports are sent to China.
The US buys Argentinian beef under a tariff-rate quota of 20,000 metric tons a year, with imports above that threshold facing a 26.4 percent tariff. It was during Trump’s first term that Argentina was able to rekindle beef exports to the US after a nearly two-decade hiatus.
Trump’s plan comes amid the US’s $20 billion rescue of Argentina, where a collapsing currency is threatening support to libertarian President Javier Milei ahead of midterm elections. The aid has drawn criticism from US farm groups, coinciding with a tariff pause by Milei’s government that spurred a surge in Argentine soybean exports to China – at a time when the Asian nation has banned purchases of US soy.
“President Trump’s plan to buy beef from Argentina is a betrayal of the American rancher,” Christian Lovell, senior director of programs for agricultural watchdog Farm Action, said in an emailed statement. “After crashing the soybean market and gifting Argentina our largest export buyer, he’s now poised to do the same to the cattle market.”
Mario Ravettino, head of the Consortium of Argentine Meat Exporters, said there was nothing set in stone for now, declining to add further details.
In Argentina itself, beef consumption has slumped in recent years as the country has grappled with economic crises, forcing families to seek cheaper meat options like pork and chicken. Nevertheless, per capita red meat-eating is still easily the highest in the world alongside neighbour Uruguay.
by Gerson Freitas Jr., Skylar Woodhouse & Jonathan Gilbert, Bloomberg
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